Is your business outgrowing your phone system? Your telephone is
your primary communication tool, and how you and your staff handle
customer calls has an impact on your business's bottom line.
Ever wish you had a phone system that gave callers the impression
you had a larger company? Or wish you had a more efficient way of
handling incoming phone calls without the expense of purchasing a
100-station private branch exchange (PBX) system and hiring a
receptionist?

For a small business, a digital key or hybrid phone system
fulfills both needs. A scaled-down version of a PBX system--which
has a minimum of 100 phone stations and usually needs an operator
to run it--key systems provide as few as three and as many as 90
stations, while requiring no operator to route calls. Instead, an
"auto attendant," similar to voice mail, electronically
answers the phone, offers several options, and connects callers to
requested extensions. Auto attendants can be programmed to greet
callers and offer information, such as directions to your office or
an estimate on how long the wait will be before their call is
routed.

Some systems are hybrids of key and PBX systems and incorporate
features of each. A digital hybrid system, for example, allows you
to integrate single digital and analog phone lines, answering
machines, fax machines, voice-mail systems and automated attendant
features. Vodavi Technology Inc. offers two lines: the Infinite DVX
line, which can expand to 96 lines and 252 stations and sells for
$450 to $600 per station; and the base Starplus DHS, which costs
$250 to $400 per station. The Starplus DHS is a hybrid that can be
configured as a three-line, eight-station system; a nine-line,
24-station system; or a 12-line, 16-station system. With more than
200 features, including two-way, hands-free internal calling and
Voice Over Busy to communicate with an inside party on a call
without interrupting the outside party, the Starplus DHS comes in
basic, enhanced and executive versions.

"Stations," sometimes called "seats," are
the phone units that sit on each desk and are connected to a
central control or switching box attached to the wall where the
phone wires are located, similar to a PBX system. In general, most
PBX systems don't supply stations, while key systems do. Most
key systems require you to use the manufacturer's proprietary
phone units; some systems can be configured to work with phones you
already own.

Stations come equipped with numerous programmable buttons and
small LCD display screens, in addition to dial pads and the usual
redial, mute and hold buttons found on one- and two-line
telephones. Features on the newest key systems can include
permitting users to talk on the phone while sending or receiving a
fax on the same unit, replacing the handset with a cordless phone,
and conference call and intercom buttons.

Panasonic's KX-TD308 has a personal safety feature that
allows you to lock or unlock your home or office door from your
desk or work area. When visitors want to enter, they ring the
special doorbell box, which is connected to a dedicated key
station. You simply press a button on your desktop unit to talk to
the visitor and permit entry (like in a secured building).

Northern Telecom Ltd.'s (Nortel's) Norstar Compact
Integrated Communications System (ICS), with more than 100 powerful
features, provides internal messaging. So if you're calling a
co-worker who's away from his desk or on another call, just
touch the "Later" key, and a "Priority Later"
message appears on his unit's display screen to let him know
the call is urgent.

While you may still be relying on a voice-mail software system,
key systems are far more sophisticated, and they, too, use
automation software that can be customized. The main difference
between voice-mail systems and key systems is that voice-mail
systems depend on software to perform their functions, while key
systems depend on hardware as well as software applications. Voice
mail is an option on most key systems and costs extra.

According to a survey by Nortel, the decision to buy a phone
system is made every five to seven years. Is it time to upgrade
yours? It will take some serious thought and an examination of your
budget to determine exactly which lines, stations and high-tech
features your business needs to mix and match. One final issue to
consider: Of the hundreds of new features available on key systems,
how many will you actually use for business calls? The answer will
definitely affect your purchasing decision.

The products in our chart represent only the base models
available; most manufacturers have at least two model lines and
many upgrades that can be customized for your business.

Here's a glossary to help you understand key telephone
systems and some of their features:

Analog. A technology that sends messages in basically the
same form as the original (analogous) and is limited to one
transmission at a time. Some of the new digital phone systems have
ADPs or built-in analog converters.

ANI (automatic number identification). This posts a
caller's name and number on the display screen.

Call park. With this feature, an active call can be
placed on hold (parked) and assigned a retrieval code while you
page or find the sought-after party, who can then pick up the call
from any extension by punching in the code.

Day/night service. At a pre-programmed time, the system
can switch to night service, bypassing the auto attendant and
sending calls directly to an extension.

Digital. The opposite of analog, this technology has a
high bandwidth and translates messages into binary code to carry
signals as a multiple of values, allowing voice and data to be
carried on the same band.

DISA (direct inward system access). This feature allows
you to remotely access your phone system to make outgoing calls,
which is useful if your business phone is charged a lower rate than
a calling card.

Live call screening. This allows you to monitor active
calls in your mailbox through the headset or speaker.

Modules. Most key systems are built on an open modular
architecture, like building blocks, and accept additional modules
to expand the system as your business requires more stations, more
power or more advanced functions.

Toll restriction. Callers must enter a password before an
outside call can be made.

Jill Amadio is a writer in Newport Beach, California.

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